AAR CORP (AIR) Stock Fundamental Analysis

NYSE:AIR • US0003611052

114.63 USD
+1.09 (+0.96%)
At close: Feb 18, 2026
114.959 USD
+0.33 (+0.29%)
After Hours: 2/18/2026, 8:13:50 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

AIR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of AIR get a neutral evaluation. Nothing too spectacular is happening here. AIR is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year AIR was profitable.
  • AIR had a positive operating cash flow in the past year.
  • In the past 5 years AIR has always been profitable.
  • In the past 5 years AIR always reported a positive cash flow from operatings.
AIR Yearly Net Income VS EBIT VS OCF VS FCFAIR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

  • AIR's Return On Assets of 2.90% is in line compared to the rest of the industry. AIR outperforms 54.79% of its industry peers.
  • AIR has a Return On Equity of 6.03%. This is comparable to the rest of the industry: AIR outperforms 53.42% of its industry peers.
  • AIR has a Return On Invested Capital of 8.32%. This is in the better half of the industry: AIR outperforms 69.86% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AIR is in line with the industry average of 8.97%.
  • The 3 year average ROIC (7.36%) for AIR is below the current ROIC(8.32%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.9%
ROE 6.03%
ROIC 8.32%
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
AIR Yearly ROA, ROE, ROICAIR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

1.3 Margins

  • The Profit Margin of AIR (3.17%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of AIR has grown nicely.
  • AIR has a Operating Margin (9.40%) which is in line with its industry peers.
  • AIR's Operating Margin has improved in the last couple of years.
  • AIR's Gross Margin of 19.29% is on the low side compared to the rest of the industry. AIR is outperformed by 63.01% of its industry peers.
  • AIR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.4%
PM (TTM) 3.17%
GM 19.29%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
AIR Yearly Profit, Operating, Gross MarginsAIR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
  • The number of shares outstanding for AIR has been increased compared to 1 year ago.
  • AIR has more shares outstanding than it did 5 years ago.
  • AIR has a better debt/assets ratio than last year.
AIR Yearly Shares OutstandingAIR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
AIR Yearly Total Debt VS Total AssetsAIR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • AIR has an Altman-Z score of 3.67. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
  • AIR's Altman-Z score of 3.67 is in line compared to the rest of the industry. AIR outperforms 49.32% of its industry peers.
  • A Debt/Equity ratio of 0.61 indicates that AIR is somewhat dependend on debt financing.
  • AIR has a worse Debt to Equity ratio (0.61) than 65.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Altman-Z 3.67
ROIC/WACC0.84
WACC9.88%
AIR Yearly LT Debt VS Equity VS FCFAIR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 2.84 indicates that AIR has no problem at all paying its short term obligations.
  • AIR's Current ratio of 2.84 is in line compared to the rest of the industry. AIR outperforms 57.53% of its industry peers.
  • A Quick Ratio of 1.31 indicates that AIR should not have too much problems paying its short term obligations.
  • AIR has a Quick ratio of 1.31. This is comparable to the rest of the industry: AIR outperforms 42.47% of its industry peers.
Industry RankSector Rank
Current Ratio 2.84
Quick Ratio 1.31
AIR Yearly Current Assets VS Current LiabilitesAIR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 26.72% over the past year.
  • The Earnings Per Share has been growing by 12.75% on average over the past years. This is quite good.
  • AIR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.40%.
  • AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%

3.2 Future

  • Based on estimates for the next years, AIR will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.83% on average per year.
  • The Revenue is expected to grow by 9.49% on average over the next years. This is quite good.
EPS Next Y21.85%
EPS Next 2Y19.38%
EPS Next 3Y18.26%
EPS Next 5Y15.83%
Revenue Next Year18.09%
Revenue Next 2Y14.24%
Revenue Next 3Y11.42%
Revenue Next 5Y9.49%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
AIR Yearly Revenue VS EstimatesAIR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
AIR Yearly EPS VS EstimatesAIR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.99, which means the current valuation is very expensive for AIR.
  • AIR's Price/Earnings ratio is rather cheap when compared to the industry. AIR is cheaper than 89.04% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of AIR to the average of the S&P500 Index (27.27), we can say AIR is valued inline with the index average.
  • The Price/Forward Earnings ratio is 20.62, which indicates a rather expensive current valuation of AIR.
  • 94.52% of the companies in the same industry are more expensive than AIR, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 28.16. AIR is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 25.99
Fwd PE 20.62
AIR Price Earnings VS Forward Price EarningsAIR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 87.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.1
AIR Per share dataAIR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of AIR may justify a higher PE ratio.
  • A more expensive valuation may be justified as AIR's earnings are expected to grow with 18.26% in the coming years.
PEG (NY)1.19
PEG (5Y)2.04
EPS Next 2Y19.38%
EPS Next 3Y18.26%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for AIR!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

AAR CORP

NYSE:AIR (2/18/2026, 8:13:50 PM)

After market: 114.959 +0.33 (+0.29%)

114.63

+1.09 (+0.96%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-06
Earnings (Next)03-25
Inst Owners97.11%
Inst Owner Change0.18%
Ins Owners1.93%
Ins Owner Change-3.78%
Market Cap4.54B
Revenue(TTM)2.97B
Net Income(TTM)94.10M
Analysts81.67
Price Target107.83 (-5.93%)
Short Float %2.83%
Short Ratio2.22
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.81%
Min EPS beat(2)8.56%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)9.37%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)6.16%
EPS beat(12)12
Avg EPS beat(12)5.88%
EPS beat(16)16
Avg EPS beat(16)5.63%
Revenue beat(2)2
Avg Revenue beat(2)4.72%
Min Revenue beat(2)3.12%
Max Revenue beat(2)6.33%
Revenue beat(4)3
Avg Revenue beat(4)3.22%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)5
Avg Revenue beat(8)1.93%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)6.29%
PT rev (3m)21.41%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)5.38%
EPS NY rev (3m)5.07%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)9.97%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)6.82%
Valuation
Industry RankSector Rank
PE 25.99
Fwd PE 20.62
P/S 1.53
P/FCF N/A
P/OCF 3239.94
P/B 2.91
P/tB 6.36
EV/EBITDA 16.1
EPS(TTM)4.41
EY3.85%
EPS(NY)5.56
Fwd EY4.85%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)0.04
OCFY0.03%
SpS75
BVpS39.45
TBVpS18.03
PEG (NY)1.19
PEG (5Y)2.04
Graham Number62.57
Profitability
Industry RankSector Rank
ROA 2.9%
ROE 6.03%
ROCE 10.53%
ROIC 8.32%
ROICexc 8.56%
ROICexgc 12.77%
OM 9.4%
PM (TTM) 3.17%
GM 19.29%
FCFM N/A
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score7
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Debt/EBITDA 2.83
Cap/Depr 60.38%
Cap/Sales 1.17%
Interest Coverage 3.73
Cash Conversion 0.42%
Profit Quality N/A
Current Ratio 2.84
Quick Ratio 1.31
Altman-Z 3.67
F-Score7
WACC9.88%
ROIC/WACC0.84
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
EPS Next Y21.85%
EPS Next 2Y19.38%
EPS Next 3Y18.26%
EPS Next 5Y15.83%
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%
Revenue Next Year18.09%
Revenue Next 2Y14.24%
Revenue Next 3Y11.42%
Revenue Next 5Y9.49%
EBIT growth 1Y65.62%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year50.8%
EBIT Next 3Y23.82%
EBIT Next 5Y18.95%
FCF growth 1Y-217.73%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y-97.72%
OCF growth 3Y-21.7%
OCF growth 5YN/A

AAR CORP / AIR FAQ

What is the ChartMill fundamental rating of AAR CORP (AIR) stock?

ChartMill assigns a fundamental rating of 5 / 10 to AIR.


What is the valuation status of AAR CORP (AIR) stock?

ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.


Can you provide the profitability details for AAR CORP?

AAR CORP (AIR) has a profitability rating of 6 / 10.


How financially healthy is AAR CORP?

The financial health rating of AAR CORP (AIR) is 4 / 10.


What is the expected EPS growth for AAR CORP (AIR) stock?

The Earnings per Share (EPS) of AAR CORP (AIR) is expected to grow by 21.85% in the next year.